Still plenty to like in this market

Tech may be spoiling the party, but old standbys like insurers, banks, retail and oil are holding up nicely.

By Jim Cramer Oct 22, 2012 9:18AM

thestreet logoKick Images, Photodisc, Getty ImagesTo listen to the dialogue is to think that somehow the world came to an end because of earnings last week. But I think that's in large part because of the companies that caught our eyes more than the companies that actually reported.

 

I'm not disputing some high-profile misses. Google (GOOG) had given no sign that it was struggling with mobile and mobile advertisers. None. Its acolytes, people close to the company, gave us no insight whatsoever that it was meeting with resistance and that advertisers are balking even for mobile search ads.

 

IBM (IBM) did deliver in the same fashion that it has delivered since $125. I am not kidding. Go back and look. But it gave soft linear commentary, so that doomed the stock.

 

Chipotle (CMG) is mortal. It's been mortal. The stock price is adjusting for it.

 

Abbott (ABT) had a nasty miss and a new drug rejection, both unusual, although that stock has a habit of trading down after earnings. 

 

These are all high-profile names -- names that are at the tip of every investor's tongue.

 

Yet they do not define what's been happening in October. In fact, any perusal of the charts shows many sanguine lessons, with whole groups standing out. They just happen to be very boring groups.

First, there are the insurers, and they are a marvel. Travelers (TRV) put it into focus, but we have major price premium increases kicking in across the board. It finally might be time to really get in big for Berkshire Hathaway (BRK.A/BRK.B). I wish Robert Benmosche had said nothing about the government and AIG (AIG), because that stock has been powering higher on a belief that the government won't be selling anytime soon because of a lockup that doesn't expire until after the election. Major property and casualty players such as Chubb (CB) are acting extraordinarily well.

 

Oil and gas stocks have been tearing of late. Just an amazing move. The charts for drillers and oils are quite firm and weren't dinged at all last week.

 

Banks look to be stabilizing and ready to go higher on any notice.

 

Retail is split but not all bad by any means.

 

Miners and minerals barely went down. Stocks such as Freeport-McMoRan Copper & Gold (FCX), Nucor (NUE) and Southern Copper (SCCO) are doing amazingly well.

 

Telcos, led by Verizon (VZ), were very good, as were utilities, some of which are making giant bases, including Exelon (EXC), and I think can rally for ages. 

 

Even the industrials are not uniformly bad. I am not going to take my cue from Parker-Hannifin (PH), as that company has missed too often. General Electric (GE) simply wasn't nearly as bad as the commentary.

 

Which leaves tech. The sector, which is 20% of the S&P 500 ($INX) including 5% Apple (AAPL), is way too big compared with its fundamental secular decline. We are seeing a wholesale revaluation of that group lower, and that's gut-wrenching, because it's just not finished.

 

And if Apple reports a good number and it lifts the group, that's one more chance to slam it, because the zero-sum is still very much in force.

 

Just think of it like this: Do you care more about Chipotle than Chubb? Of course.

But should you?

 

Jim Cramer TheStreet.com

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long IBM, AIG, GE and AAPL.

 


 

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19Comments
Oct 22, 2012 9:03PM
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Hey Jim... did you read the article about Wal-Mart being sued for attempting slave labor on temps? It says... the business created by a good American, who died and left it to relative pariah whose worth is equal to 130 MILLION Americans... demands temps to come in early, stay late and work through lunch breaks. Meanwhile, Walton inheritors literally can wipe their butts with $100 bills and it wouldn't put a dent in their wealth.

Why aren't you writing Reality articles about pieces of shift like this? You think your rally has legs. Not. WHEN the Waltons are broke and begging, I thought it would be nice to make an arbitrtation board out of those former temps and let them have at it.

Oct 22, 2012 4:33PM
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How about todays` comeback!That`s one of the reasons I love this country,despite the

negative far right.Viva Obama!

Oct 22, 2012 1:23PM
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If you want to follow cramers advice - here was his take on google on sept 26th.

"But as far as buying it at $700 vs. buying Google at $730, to me the choice was pretty clear. Apple can come down a bit more because of all of these , but Google has some ways to go before I think it can pause"

The genius of selling snake oil ....if individual investors back away from he markets people like cramer will have to go back to selling sham wows.
Oct 22, 2012 12:50PM
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and now this scam artist has his partner stephanie link on cnbc spewing

his crap............these 2 should be in jail

Oct 22, 2012 12:24PM
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 Instead of putting 2 trillion extra into defense over the next 10 years, try expanding the natural gas infrastructure to reach 98% of US homes in the lower 48 and to develop cars that run on natural gas. We would THEN be energy independent and the good news is no new drilling necessary, we already have it in reserve. IF what they say in those ads is true  Bye bye OPEC. Oil prices would collapse---- gee I wonder who would be against that happening. Exxon Mobil shareholders perhaps who have more oil than natural gas?
Oct 22, 2012 12:16PM
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 The company that delivers the best product to compete with the iPad is gonna make a big big bundle. Imagine if it even became more popular than the iPad. So who will it be?
Oct 22, 2012 12:08PM
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Jim found the handle Bob Dylan says the vandals took..
Oct 22, 2012 12:05PM
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There is nothing investers can do right now because Wall street is dead set on giving away the ship nomatter what kind of news id out there. They are now in manipulation mode for awhile!!
Oct 22, 2012 12:00PM
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  Watched a show that showed the battle between Vanderbilt and Rockefeller. First  Vanderbilt called the shots because he ruled the railroads. But when he hiked the price to deliver oil to Rockerfellr's refineries, he failed to realize that oil transportation  had become a large chunk of his business. So Rockerfeller simply built pipe lines from the oil fields to his refineries and the railroad ended up losing 40% of their business because of that ill advised price hike. Eventually Rockerfeller amassed a wealth equal to 250 billion in today's dollars
Oct 22, 2012 11:47AM
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Fedx is hiring 20,000 workers, furthur evidence of how the economy is going

up.

Oct 22, 2012 11:46AM
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 I would thinjk that Apple, just like Microsoft  in the 1990s, has seen its high for spme time to come. Things were great when they cornered the market, but now competent competition is rapidly shrinking Apple's slice of the pie
Oct 22, 2012 11:39AM
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 Gas prices dropping like a rock JUST before the election. GOTTA be a conspiracy say Welch! After all the ignorant knee jerks among us gauge the health of the economy by what gas prices are doing at any given moment. So NOW things are swell!
Oct 22, 2012 11:36AM
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  After 65 years I have learned that the doom and gloomers are never right

 Take the current Doomsday Fiscal Cliff as a GREAT example. It sure as hell ain't set in stone. The whole thing goes away when some Important Dude merely scribbles his name on a piece of paper. when the game of chicken ends. And so it will be
Oct 22, 2012 11:05AM
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Cramer, why don't you un-load and tell us the thruth?  This is getting worst by the day: US and Europe economies are bad, everyother country are fighting with each other, unemployeement everywhere, etc (too long to list)

 

The faster the correction; the better the market!  Let it be!

Oct 22, 2012 11:01AM
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There`s been a change in the general election.Republicans vote November 7th 2012.
Oct 22, 2012 10:56AM
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What? You are a shill for Wall Street! What kind of idiot suggests people continue to invest in a rigged controlled and manipulated market? People need to cash out, pay off debt and prepare to endure a correction period where all falsehoods fall apart and people who thought no one could touch them, end up in prison. You couldn't name ONE SINGLE STOCK whose value is comprised of genuine assets and genuine sales and is run by a competent individual or team with genuine hands-on management skills. Administrators, financiers and bureaucrats... losers who have taken us from GREAT to the gutter.
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